UPS expands agreement for renewable LNG in Texas

By UPS | February 10, 2016

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UPS announced it has expanded its agreement with Clean Energy Fuels Corp. to use up to 500,000 gallon equivalents of renewable liquefied natural gas (RLNG) annually in Texas. UPS stations in Houston and Mesquite will dispense the RLNG to a fleet of about 140 UPS tractors. The deal builds on UPS’s current agreement with Clean Energy Fuels whereby UPS is using approximately 1.5 million gallon equivalents of renewable compressed natural gas (RCNG) annually in California where UPS operates nearly 400 CNG vehicles.

“Renewable natural gas is helping us to meet growing customer demand while reducing our environmental impact,” said Mark Wallace, UPS senior vice president, global engineering and sustainability. “Today’s agreement demonstrates UPS’s commitment to develop alternative fuels and advanced technologies. By the end of 2017 we will have driven one billion miles with our alternative fuel and advanced technology fleet.”

Redeem by Clean Energy is a renewable natural gas program that sources RNG, also known as biomethane, using a variety of methods. It can be used as CNG or LNG and is derived from many abundant and renewable sources, including decomposing organic waste in landfills, wastewater treatment and agriculture.

“UPS’s continuing commitment to new, clean vehicle fuel is helping to shape the future of transportation,” said Harrison Clay, president of Clean Energy Renewables of Clean Energy. “Our collaboration with UPS builds demand to create and expand markets.”

The deal is part of an initiative announced last year by UPS to significantly expand its use of RNG natural gas in UPS’s alternative fuel and advanced technology fleet. In addition to natural gas, UPS also uses many other alternative fuels in the UPS fleet, including propane, ethanol, renewable diesel, and electricity. In 2014, 5.4 percent of total gas and diesel purchased was displaced by using these alternative fuels.

UPS operates one of the largest private alternative fuel and advanced technology fleets in the U.S. Its fleet includes more than 6,840 all-electric, hybrid electric, hydraulic hybrid, CNG, LNG, propane and light-weight fuel-saving composite body vehicles.